Statements by Minister Fernando Haddad (Finance) about the review of government spending and expressions of support for him interrupted the appreciation of the dollar yesterday, which had taken the currency to R$ 5.40. The rate closed at R$ 5.37, a drop of 0.7%.
The stock market fell 0.3%. Alongside Simone Tebet (Planning), Haddad said he asked his team to "intensify" the discussion on spending containment "to provide reassurance" on fiscal issues. The statement came a day after Lula (PT) spoke about revenue without mentioning cuts.
The president's statement on fiscal policy had added to the market's perception that Haddad was weakened by a defeat in Congress, which rejected a provisional measure on tax credits. The text was the minister's bet to offset the payroll tax exemption. Yesterday, Lula defended his aide. "Haddad is an extraordinary minister," he said during a trip to Geneva. He also said it is up to senators and businessmen to find a solution to maintain the tax benefit on salaries. "Haddad tried. They didn't accept."